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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: La Traguhs who wrote (7056)	9/2/1999 11:11:00 PM
From: Sam	Read Replies (4) \| Respond to of 9256

Now Headway is going public; now I may be wrong about this, but it seems to me that Seagate took a fair sized equity position in them back in '97 or so. Does anyone recollect that? As I recall, it was in the 15-20% area. Also, LT, do you know what has happened to Seagate's initiative of a couple of years ago to develop a different kind of motor for faster drives? Allegedly quieter and more energy efficient. Meanwhile, Seagate got up to 34, Maxtor to 7 today. Rarified heights, relatively speaking. Heavy options action in Seagate, apparently a huge position bullish position was rolled from Sept to Oct. Headway Technologies files to raise $34.5 mln in IPO WASHINGTON, Sept 2 (Reuters) - Headway Technologies Inc., which manufactures key parts for computer data storage systems, said Thursday it plans raise $34.5 million in an initial public offering, a Securities and Exchange Commission filing said. . The Milpitas, Calif.-based company sells recording heads to the computer hard disk drive industry, providing its products to companies like Seagate Technology Inc. (NYSE:SEG - news), Toshiba Corp. and SAE Magnetics Ltd. The company plans to use the funds raised in the IPO to repay some notes coming due next year and 2001 as well as for capital expenditures, possible future acquisitions, and other general corporate purposes. Founded in 1994, the company initially provided most of its recording heads to its largest shareholder Hewlett-Packard Co. but that business dried up when Palo Alto, Calif.-based HP decided in July 1996 to exit the disk drive industry and sell its stake in Headway. The company, which was acquired in a recapitalization by an investor group led by H&Q Asia Pacific in January 1997, posted $620,000 in net income through July 3, 1999. Headway is run by Mike Chang, 55, who has been with the company since 1997. Prior to joining the company he was senior vice president of engineering at SAE Magnetics. While Headway didn't disclose how many shares it planned to offer in the IPO or their estimated price range in its preliminary Securities and Exchange Commission filing, it has applied to list the shares on Nasdaq under the symbol (Nasdaq:HWTI - news). Typically, companies file subsequent documents with the SEC detailing how many shares of common stock the company plans to offer, the projected price range and other details. The $34.5 million figure it cited in the filing was merely a basis for calculating the SEC registration fee, the company said. The underwriters include Hambrecht & Quist and Banc of America Securities.